John Boccuzzi, Jr.

Borders Alters Loyalty Program, Lowers E-Reader Prices

September 1, 2010

FROM RETAILWIRE:
Borders is introducing a new rewards program and lowering prices on its e-book readers to gain some traction in its competition with Amazon, Barnes & Noble and others. What will have a more positive effect on Borders' business; its new loyalty program options or lower e-reader prices?      [more...]

Borders is behind the curve on e-readers and needs to develop a program that will get them back in the game.

Combining the two themes could be interesting if loyalty members could earn "points" towards a new eReader or eBooks. The paid version of the loyalty program would have higher value "points" letting you reach your target faster. Staples does an amazing job at this through their loyalty program. Each month I receive a store credit in the mail sometimes reaching over $30. Imagine if a loyal Borders customer could earn a free Kobo eReader in 1 year by purchasing books through Borders.

Loyalty tips:
1) The reward needs to have real value.
2) It needs to be attainable.
3) Progress reports need to be shared.
4) Double "Point" opportunities need to be offered to keep the program exciting and the customer engaged.